Royal Gold(RGLD) - 2021 Q4 - Annual Report

Financial Performance - Royal Gold achieved record revenue of $615.9 million in fiscal year 2021, a 23% increase from $498.8 million in fiscal year 2020[14] - For the fiscal year ended June 30, 2021, the company reported total revenue of $615.9 million, with approximately 84% derived from precious metals, including 74% from gold and 10% from silver[31][232] - Total revenue for the year ended June 30, 2021, was $615,856,000, representing a 23.4% increase from $498,819,000 in 2020[251] - Operating income increased to $337,602,000 in 2021, up from $198,945,000 in 2020, marking a 69.8% growth[251] - Net income attributable to Royal Gold common stockholders was $302,532,000, compared to $199,343,000 in the previous year, reflecting a 51.9% increase[251] - Total segment gross profit for 2021 was $333.002 million, compared to $236.058 million in 2020, marking a 41% increase[366] - Basic EPS for the fiscal year ended June 30, 2021, was $4.61, up from $3.04 in 2020, representing a 51.5% increase[348] - Diluted EPS for the fiscal year ended June 30, 2021, was $4.60, compared to $3.03 in 2020, reflecting a 52.0% increase[348] Revenue Sources - As of June 30, 2021, stream interests accounted for approximately 69% of total revenue, while royalty interests accounted for 31%[26] - Total stream interests generated revenue of $359.9 million, with Canada contributing $158.7 million and the Dominican Republic $97.0 million[29] - Total royalty interests generated revenue of $139.0 million, with the United States contributing $48.7 million and Canada $30.5 million[29] - Stream revenue for gold was $324.0 million, up 9.9% from $294.5 million in fiscal year 2020, while silver stream revenue increased to $43.3 million from $32.7 million[328] - Royalty revenue for gold rose to $131.8 million, a 34.3% increase compared to $98.2 million in fiscal year 2020[328] Assets and Liabilities - The total stream and royalty interests, net, amounted to $2.26 billion as of June 30, 2021, compared to $2.32 billion in the previous year[27] - Total assets decreased to $2,651,605,000 in 2021 from $2,766,287,000 in 2020, a reduction of 4.1%[249] - Total liabilities significantly decreased to $148,190,000 in 2021 from $464,168,000 in 2020, a decline of 68.2%[249] - The company’s total equity increased to $2,503,415,000 in 2021 from $2,302,119,000 in 2020, an increase of 8.7%[249] Cash Flow and Dividends - Cash flows from operating activities increased to $407,151,000 in 2021, compared to $340,752,000 in 2020, an increase of 19.5%[257] - The company declared cash dividends of $1.18 per common share in 2021, up from $1.11 in 2020, a rise of 6.3%[251] - The company increased its calendar year dividend to $1.20 per basic share, representing a 7% increase compared to the previous year[14] Acquisitions and Investments - Royal Gold made a total advance payment of $212 million for the Khoemacau Project silver stream, securing an 80% base silver stream[14] - The company acquired a 1.0% net smelter return royalty on the Côté Gold project for $75 million in cash[14] - Royal Gold entered into a precious metals purchase agreement for a gold stream interest in the NX Gold mine for $100 million, with additional payments of up to $10 million based on success[14] - The company has ongoing acquisition opportunities for stream and royalty interests, with various stages of active review[13] - The company made a $100 million advance payment for the NX Gold Stream acquisition on August 6, 2021, with potential additional payments of up to $10 million based on success-based targets[372] Market Conditions and Competition - The company faces significant competition in the mining industry, particularly in the stream and royalty segments, where larger competitors may have greater resources[32] - Throughout fiscal year 2021, operational curtailments due to COVID-19 did not materially impact the company's financial condition[14] - The company continues to monitor the impact of the COVID-19 pandemic on its operations, although results have not been materially affected to date[311] Sustainability and Human Capital - The company emphasizes the importance of human capital, with a strategy focused on attracting, developing, and retaining talent[37] - The company is committed to maintaining a safe workplace, achieving a total recordable injury frequency rate of zero for the past five years[41] - The company actively supports sustainability initiatives and community engagement in areas where it holds stream and royalty interests[45][46]